Press Release

Pincon Spirit Limited

10 November, 2017

Name of the Instruments Amount Rating/Outlook (Rs. Crore) SMERA BBB- Proposed Non-Convertible (Downgraded from SMERA BBB+; placed 35.00 Debentures under Rating Watch with Negative Implications) SMERA BBB- (Downgraded from SMERA BBB+; placed Cash Credit 245.00 under Rating Watch with Negative Implications)

SMERA has downgraded the ratings on the Rs.245.00 crore bank facilities and Rs. 35.00 crore Proposed Non- Convertible Debentures issue of Pincon Spirit Limited (PSL) to ‘SMERA BBB- ‘(read as SMERA triple B minus) from ‘SMERA BBB+/Stable’ (read as SMERA triple B plus) and has placed the rating on ‘Rating Watch with Negative implications’.

The rating actions are driven by the recent adverse developments in respect of PSL. PSL has informed exchanges (BSE and NSE) vide its letter dated 07th November, 2017 that the company’s Chairman Mr. Monoranjan Roy was arrested on 02nd November, 2017.

SMERA believes that this development is likely to have an impact on the operational and financial performance of the company over the near to medium term. SMERA is in the process of discussion with company officials and the company’s bankers to understand the extent of impact of these developments on the credit profile of PSL. In the interim, the rating will continue to be under watch with Negative Implications.

About the rated entity:

PSL is engaged in the manufacturing and trading of IMFL (Indian Made Foreign Liquor) and IMIL (Indian Made Indian Liquor) in , , Orissa, and other states in South . The company is also engaged in the trading of edible oil in West Bengal and neighbouring states. SMERA has taken a consolidated view of the financial and business risk profile of PSL and its subsidiaries. Together, they are referred to as the Pincon Group (PG).

Rating History for last three years:

Name of Instrument / Date Term Amount Ratings/Outlook Facilities (Rs. Crore) SMERA BBB+ / 245.00 Stable Cash Credit Long Term (Enhanced from (Upgraded from Rs. 120.00 Cr.) SMERA BBB/Stable) 09-Mar, 2017 SMERA BBB+ / Proposed Non- Stable Long Term 35.00 convertible debentures (Upgraded from SMERA BBB/Stable)

SMERA BBB/Stable Cash Credit Long Term 120.00 (Assigned)

SMERA BBB/Stable 16-Dec, 2015 Proposed Cash Credit Long Term 125.00 (Assigned)

SMERA BBB/Stable Proposed Non- Long Term 35.00 (Assigned) convertible debentures

Contacts:

Analytical Rating Desk Vinayak Nayak, Varsha Bist Head – Ratings Operations Sr. Executive Tel: +91-22-6714 1190 Tel: 022-67141160 Email: [email protected] Email: [email protected]

Namita Palve, Rating Analyst, Tel: +91-22-6714 1129 Email: [email protected]

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